Business Skinning Left, pagematch: , sectionmatch: 1

Business ( Leaderboard Top ), pagematch: , sectionmatch: 1

Cebu Pac seeks Congress nod for $15-M Tigerair buyout

MANILA, Philippines - Budget airline Cebu Air Inc. the operator of the Cebu Pacific brand, is seeking the green light from Congress for the complete acquisition of low-cost carrier Tiger Airways Philippines.

Jorenz Tanada, vice president for corporate affairs of Cebu Pacific, said in the text message that the budget carrier is now in the process of seeking congressional approval after getting the nod of the Civil Aeronautics Board (CAB) for the $15-million transaction.

The CAB gave Cebu Pacific the green light to acquire 100 percent of Tigerair Philippines last Feb. 17

The Committee on Franchise of the House of Representatives has to approve the proposed acquisition.

 “As far as congressional approval is concerned, we are currently coordinating with our external counsel for the necessary filing and will be doing so shortly,” Tanada said.

Cebu Pacific president and chief executive officer Lance Gokongwei announced early in January that it entered into a $15-million share purchase agreement and strategic alliance with Tigerair Philippines to create the biggest network of flights in the region.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

The budget airline is spending $7 million to acquire the 40 percent share of Tiger Airways Singapore Pte Ltd. and $8 million for the 60 percent owned by Filipino businessmen in Tigerair Philippines .

Cebu Pacific announced that it has closed its purchase of 100 percent of Tigerair Philippines including the 40 percent stake of Tiger Airways Holdings Limited last March 22.

Both airlines have already launched the initial phase of the Cebu Pacific – Tigerair strategic alliance wherein Tigerair Philippines flights could now be booked through the Cebu Pacific website.

Tigerair Philippines flights would continue to be operated out of the Ninoy Aquino International Airport (NAIA) Terminal 4 while Cebu Pacific flights will remain at NAIA Terminal 3.

“The strength of the alliance lies in our ability to offer our trademark lowest fares to the largest low cost network to, from, and within the Philippines. The alliance gives us an opportunity to serve new markets, like India and Australia , as we expand our route network with Tigerair,” Gokongwei said.

Tigerair Philippines president and chief executive officer Olive Ramos said both airlines are excited about the alliance.

 “We are excited to be part of the Cebu Pacific family. We are committed to do our part to contribute to the growth of our business: upholding the highest standard of excellence for performance and customer service thereby creating for our company a reputation beyond par in the Philippine aviation industry,” she said.

Cebu Pacific currently operates over 2,200 flights per week with 51 aircraft to 24 international and 33 Philippine cities in its network while Tigerair Philippines currently operates about 118 flights per week with five aircraft to 11 domestic and international destinations from its bases in Manila and Clark .

By combining their resources, Cebu Pacific would be able to provide services to high growth markets including Australia, Myanmar, and India while Tigerair Philippines would be able to fly more passengers to additional cities in Cebu Pacific’s extensive network in the Philippines and North Asia.

 

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
  • Follow Us:
Business Skinning Right, pagematch: , sectionmatch: 1